The use of rubber, especially rubber particles such as ground up rubber tires in paving compositions is desirable since the resulting pavements have improved skid resistance and flexibility. Heretofore, such paving compositions, including asphalt-rubber emulsions, have been prepared under hot-mix conditions requiring heating a paving grade asphalt with the particulate rubber. An example of such a method is disclosed in U.S. Pat. No. 4,018,730. However, heating of rubber, typically using old ground up rubber tires at the temperatures heretofore required for blending or mixing with the asphalt compositions, above 300.degree. F., and typically between about 350.degree.-500.degree. F., results in significant volatilization of the rubber components including elemental sulfur which forms highly toxic and undesirable hydrogen sulfide. Such hot-mix processing is undesirable and unacceptable where environmental standards and air pollution controls restrict or prevent the use of such methods.